Kayaba designed the Katsuodori be a fast ramjet powered point-interceptor to defend Japan against Allied bombers. It is inspired by (and named after) the katsudori bird and its grace when hunting fish. Research began as far back as 1937 by a group of engineers studying ramjet propulsion. Engineers saw the benefits of a high-speed engine with easy manufacturing requirements.

In order to launch the Katsudori, a set of four rocket boosters were required to accelerate the aircraft enough to get the ramjet functioning, a minimum speed of 367 km/h (228 mph). Rockets were to be fired in pairs, each with about five seconds of propellant. The rockets would then be released after use. With the ramjet operating, the craft would have reached speeds of up to 900 km/h (559 mph) and could reach an altitude of 10,000 m in less than three minutes.

Designs were nearly completed by 1943, with a prototype expected by 1944. However, the IJA instead chose to work on the rocket-powered Ki-200 and Ki-202 to meet their point-defense needs. The Katsuodori never left the drawing board.